Gold Moves Up Towards $1850 Per Ounce

Published on Dec 04, 2020 12:46

COMEX Gold futures moved up today as weakness in US dollar helped propel it to a one and half week high of $1848 per ounce. The US fiscal stimulus bill talks pulled US dollar index well under 91 mark and kept Gold elevated. The metal currently trades at $1846 per ounce, up 0.25% on the day. India`s latest foreign trade data showed that Gold import from the country edged up 2.65% in November 2020 compared to November 2019.

Meanwhile, rising global food prices are also keeping buyers interested in Gold. The FAO Food Price Index (FFPI) averaged 105.0 points in November 2020, up 4.0 points (3.9%) from October and 6.4 points (6.5%) higher than its value a year ago. The November increase did not only mark the biggest month-on-month rise since July 2012, but it also resulted in the index reaching its highest level since December 2014.